The term “ATM” stands for “Automated Teller Machine,” which is a self-service banking terminal that allows customers to perform a range of banking transactions such as withdrawing cash, checking account balances, and transferring funds. Various banks provide ATM services by installing cash machines in different locations throughout the country. This allows customers to access their accounts and conduct transactions quickly and conveniently.
Automated Teller Machine (ATM) is an electro-mechanical device that provides automated banking services to customers without the need for a bank representative or teller. It enables debit or credit cardholders to withdraw cash, check account balances, deposit cash or checks, transfer funds between accounts, and pay bills.
ATMs offer significant benefits, including convenience and accessibility to banking services 24/7. However, fees are often charged for ATM transactions, including cash withdrawals, and these fees may be levied by the bank where the account is held, the ATM operator, or both. Some banks offer fee waivers for customers who use their own ATMs.
ATMs are also referred to as Automated Banking Machines (ABMs) or Cash Machines in various parts of the world.
How to Use ATMs?
To use an Automated Teller Machine (ATM), you must have a bank account and an ATM card associated with that account. Most banks issue debit cards that can be used not only at ATMs but also for online payments or card swipe transactions.
Although ATMs may differ in size and design, they all have basic components that perform the same functions:
- Input Devices Card Reader – The ATM has a slot to insert the ATM or debit card, which usually contains a magnetic strip on the back and sometimes a chip on the front that stores the account information. The card reader reads this information and sends it to the server for verification. Keypad – The ATM has a keypad where you can enter numbers, clear them, or cancel any transaction. You can use it to enter your Personal Identification Number (PIN) and the amount you want to withdraw. The keypad can either be physical buttons or a touchscreen.
- Output Devices Display Screen – There is a display screen in every ATM, typically an LCD or CRT, that displays transaction information such as the steps to complete the transaction or the remaining balance after withdrawal. It guides you through the transaction process and displays options such as PIN change, quick cash withdrawal, balance check, etc. Cash Dispenser – The bank officials safely stock cash into the ATM, and the cash dispenser dispenses the cash when you withdraw a certain amount from the ATM. Receipt Printer – After completing a transaction, the ATM prints a receipt that records the type of transaction, the amount withdrawn, and the remaining balance. During an ongoing transaction, the ATM usually asks if you want a receipt or not. If requested, you can get the receipt from the printer. Speaker – Most ATMs have a speaker that provides audio instructions for accessing the machine and performing transactions. This feature enables users to perform transactions smoothly.